Whether you are still ruminating on delving into the logistics business, or you just started, or you have even been into the business for quite a while, you will need to see these 10 costly logistics mistakes to avoid in Nigeria if you will ever get the conversion for your logistics business in Nigeria.
Worthy of mention is the fact that Nigerians do not trust one another. This is because many of your potential clients have at a point in their dealings been defrauded by fellow Nigerians in various industries.
Coming down to logistics, Nigerian postal services (Nipost) is not an option for very many persons because of the very many sad stories Nigerians have had to endure through their service.
Apart from this, the archaic and crude means of service delivery by Nipost is another big reason Nigerians will ordinarily not patronize them in this era of Tech.
This is one of the many reasons these logistics mistakes to avoid in Nigeria is key to your business success.
In this post, I will take time to outline and expatiate on the 10 costly Logistics Mistakes to avoid in Nigeria plus simple marketing strategies you should employ to achieve high conversion.
You will need to go through every mistake we have outlined here, and also take practical steps to ensure that you do not experience any one of them.
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Let’s dive right into this:
10 Costly Logistics Mistakes To Avoid In Nigeria In 2021.
Lack Of Practical Plan and Solid Foundation.
This is a must-have in any business, and by extension, the logistics business too. Most logistics businesses in Nigeria fail simply because they lack realistic business plans.
You might likely have developed a business plan for your logistics business, perhaps you should go back into it again to see if they meet with these parameters mentioned below:
How specific is your marketing plan/goal? have you tried to see the plan from an independent point of view? Have you tried to check if the plan/goal is not ambiguous (Scattered)?
One of the goal mistakes in logistics you need to avoid is ensuring that it is measurable in terms of figures. A good example might be: How many packages do you hope to deliver in x number of years or months?
Generally speaking, how achievable are your set goals? Having looked at the competition, the entire target market, how likely are you to achieve the goals you have set out for your logistics business?
Looking at the current resources at your disposal i.e. the human resources, the fixed assets, the running capital, and others, how achievable is your goal? How likely are the current resources at your disposal likely to help you to achieve your set goals?
What time frame have you allotted to each of your set goals. For instance, in x number of years, we hope to process x number of Packages.
Lack of practical and Smart plans/goals and solid foundation is one of the logistics mistakes to avoid in Nigeria if you will ever up your business conversion.
Lack Of Dedication And Willingness To Sacrifice.
Lack of Business dedication (Which includes punctuality) is a big logistics mistake to avoid in Nigeria in order to ensure success.
We had the opportunity of building a website and also managing the ICT activities of a logistics company in Nigeria. After 2 years of managing their ICT department, the company still refuses to grow because although we were only giving recommendations, the company refused to adopt our recommendations. To date, the logistics company still maintains its crude means of customer acquisition which can never get them what exactly they want.
As a logistics business owner or an intending logistics business owner in Nigeria, you must be ready to make sacrifices, take recommendations from others, and also make your customers see how dedicated you are to business.
Poor Customer Care.
Customer care plays a vital role in any business. Customer care persons serve as the first meeting point of every organization. When well trained, they help to paint a good image of your logistics business.
It is so bad that most logistics companies in Nigeria do not have a customer care person who answers customers’ queries and also provides direction and clarity to these eager and tense customers.
When some organizations try to go out of the way to recruit one, they train them poorly. A poorly trained customer care person will obviously chase the clients away from the door (Or phone) with their attitudes.
Some of the attributes your customer care person needs to have in order to perform at optimum include but are not limited to the following:
- Good phone ettiquete
- Good spoken and written english.
- Ability to work under stress.
- Ability to wear a good smile.
- Presentable dressing.
- Good knowledge of the computer (Word, Excel, Email)
Poor Online Presence.
You may argue from now till next year, but the truth remains that poor online presence is one of the biggest logistics mistakes to avoid in Nigeria.
It may interest you to know that more persons are using the internet to connect to their choice logistics in Nigeria than before. This was one of the many places where the Nigerian postal service got it all wrong. They refused to grow with the latest trends.
No one wants to walk the whole of Lagos state in search of one Logistics company. Everyone wants to punch few buttons on the mobile devices and then connect to a reliable logistics company around them.
Below are some of the areas you may need to improve:
- You need to build a logistically responsive website.
- You need to look the way of Mobiile Application to make your business more professional and easily accessible by customers.
- You need a dedicated and professional hand to handle your digital marketing (SEO, PPC, CONTENT MARKETING)
- You need online business listings (Google my business, Clutch, Good firms e.t.c.).
- You need a branded social media presence and daily engagement with clients from there.
Lack of Shipping And Delivery Equipments.
This is also one of the serious logistics mistakes to avoid in Nigeria. For bigger logistics companies, you will need most of the important logistics equipment such as the: Dock Boards and Plates, Edge of Dock Levelers, Dock Bumpers, Yard Ramps, Conveyors, Storage Equipment, and others. You may find some of these lists on cyzerg.
As a small logistics organization in Nigeria, you will also need to ensure that all the needed types of equipment for the smooth running of your business are also put in place such as motorbikes, mobile devices.
Lack of tracking tools.
Technology in the logistics business has grown exponentially too. Customers are ever eager to track their consignments than they were years ago.
Lack of package tracking is one of the biggest logistics mistakes to avoid in Nigeria. You can up your logistics game by inculcating tracking methods into every parcel you deliver to your clients in Nigeria.
Poor Knowledge of Record Keeping.
Poor knowledge of Recordkeeping and record analysis is also one of the logistics mistakes to avoid in order to become successful in Nigeria.
You will keep a lot of records in Logistics, and you need to quickly brazen up for that. Additionally, you will need a good knowledge of finance in order to keep afloat.
Use Of Outdated Technologies.
This is one of the logistics mistakes to avoid in Nigeria, in that crude or outdated technologies will both make your deliverables slow and keep you below the profit line.
Some of the new technologies you may need to purchase for your logistics business include:
- ERP software. This software helps in the day-to-daay management of your organization. It helps to keep tab on your organization’s accounting, procurement, project management, customer records, supply chains and so on.
- Enhanced GPS Accuracy
- Internet of Things (IoT) and Radio Frequency Identification (RFID)
Lack Of Proper Legal Definition.
This is one of the many logistics mistakes to avoid in Nigeria. From the start, you want to define what type of business entity you are establishing and why you want to establish this kind of logistics business.
Getting your logistics business registered in Nigeria is going to help you a lot to mitigate the risk that may come later. Additionally, registering as cooperation and not as a venture will also help you to sue in the case where your finances are in jeopardy.
Unsuitable Business Location And Building.
Not all customers will like to visit your office, but the few that will like to know your physical location should not be made to spend the entire bank savings.
Choosing a location that is far from town is one of the logistics mistakes to avoid in Nigeria. As a solution to this, you may begin to think of opening up branches across your state of location in order to cover every customer.
More on this, you do not want to get an office that does not represent your brand well. Avoid old and unkempt buildings.
What is the best way to manage logistics Business In Nigeria?
- Make solid Plans Or Goals.
- Draft contingency Plans.
- Hire right, especially your logistics managers.
- Use the latest technologies.
- Learn from the errors you have made before.
So far, I have tried to outline and elaborate on 10 common logistics mistakes to avoid in Nigeria.
Let me turn it back to you. Which of these common logistics mistakes have you made before (if you have started) or you think you might make (if you have not started)?
Let me know in the comment box below.
We are an ICT Company located in Lagos Nigeria. Our key services include:
- Web design
- Mobile App development.
- Digital Marketing.
- Marketing Goals and Strategy Development.
- Project Management.
We have good experience in Logistics, Health, Security marketing in Nigeria.